If a firm with a 20 percent market share merges with a firm with 10 percent of the market, by how much will the Herfindahl index change? The other firms have market shares of 40 percent, 10 percent, and 10 percent, 5 percent, 5 percent. O It falls by 200. O It rises by 10.

If a firm with a 20 percent market share merges with a firm with 10 percent of the market, by how much will the Herfindahl index change? The other firms have market shares of 40 percent, 10 percent, and 10 percent, 5 percent, 5 percent. O It falls by 200. O It rises by 10.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If a firm with a 20 percent market share merges with a firm with 10 percent of the market,
by how much will the Herfindahl index change? The other firms have market shares of 40
percent, 10 percent, and 10 percent, 5 percent, 5 percent.
O It falls by 200.
O It rises by 10.
O It rises by 200.
O It falls by 250.
O It rises by 900.
O It rises by 400.
O It rises by 300.

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14. Study Questions and Problems #14 Suppose that the for soda only has a few large producers, each producing a similar brand of soda. True or False: This market is most similar to an oligopoly market structure. True False
Find the attached file.
Firms Industry 1 Industry 2 Industry 3 Industry 4 1 65 70 35 50 2 15 15 35 50 10 10 30 4 Based on the Herfindahl-Hirschman index for each of the industries above, the industry with the most concentration of market power is: Industry 1 Industry 2 Industry 3 Industry 4
OWhich of the following is NOT a characteristic of oligopoly?A. Few large firms dominate the marketB. High barriers to entryC. Homogeneous productsD. Interdependence among firms
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The table below shows revenue data for different firms producing refrigerators. Use the given information to find the market share of each firm. The "other" row is comprised of a number of small firms. Round each value to 2 decimal points. SI Firm % Acme Co Baluga, LLC Cran Inc Delta Co Eagle Inc Fox Inc What is the Four Firm Concentration Ratio? Other Revenue in $ 245.00 595.00 105.00 170.00 725.00 515.00 990.00 Market Share in % ← A - ← A ←
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